Here we have composed a salient
list outlining general features typically found on most UK mortgage protection
insurance cover. It will give you an idea of the cover mortgage protection insurance
offers and the way in which it operates.
- Mortgage protection insurance cover will provide you with a monthly benefit
to aid your mortgage payments if it happens that you are prevented from continuing
your usual employment due to illness, accident or unemployment.
- Mortgage protection benefit will continue to be paid until you return
to work, your mortgage term ends or your policy ends - whichever occurs first.
- You can obtain mortgage protection insurance cover for either unemployment
or accident, sickness and disability. You can also procure a joint policy offering
you both types of cover.
- There is no investment content with UK mortgage protection insurance.
- At the beginning you decide the amount of insurance you require and its
term.
- If the term of the insurance policy has been fulfilled without mishap
or payment then the plan ends and no additional payment is made.
- Your insurance benefits will usually be paid directly to the mortgage
lender- you will have no contact with the payments.
- If you choose to change insurers then you can do so usually without a
charge and keep up continuous cover.
- The benefits that you receive from mortgage protection insurance cover
are tax-free.
Remember that every insurance policy is different- be sure to check the details
of your own personal policy to be sure of the specifications.
To read about the special features of mortgage life protection insurance (decreasing
term assurance), that will protect you mortgage in the event of your death, click
here.
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